Use this table for general guidance on accruals and deferrals at fiscal year-end closing.

Activity Type

Accrual/Deferral Type

Accounting Action*

Goods or services received by or provided to MIT in the current fiscal year that will not be paid until the next fiscal year (check Period 13 summary statement before accruing).

Accrued Expenses

Debit appropriate cost object** and cost element and then credit Internal Order 1216800 using the same cost element. In the absence of an actual invoice, use a reasonable estimate.

Goods or services provided by MIT in the current fiscal year for which payment will not be received until the next fiscal year.

Accrued Income

Credit appropriate cost object and cost element and then debit Internal Order 1078201 using the same cost element. In the absence of an actual bill, use a reasonable estimate.

Goods or services paid for in the current fiscal year that relate to the next fiscal year (e.g., prepaid rent or insurance). This includes invoices processed by Accounts Payable by June 30 for activities that relate to the next fiscal year.

Deferred Expenses

Credit appropriate cost object** and cost element then debit Internal Order 1121400 using the same cost element. DO NOT defer expenses not covered by the current fiscal year’s budget.

Income received in the current fiscal year that relates to activities or services in the next fiscal year (e.g., subscription revenue for publications to be issued in the next fiscal year).

Deferred Revenue

Debit appropriate cost object** and cost element then credit Internal Order 1225201 using the same cost element.

* This action should be reversed in Period 1 of the next fiscal year.

**WBS accruals are generally not made because they are cost reimbursable.Please consult with Financial Accounting and Reporting prior to doing a WBS accrual at fiscal year-end.If it is determined that a WBS accrual is appropriate, it must be processed in Period 12 and reversed in Period 1. WBS accruals are not allowed in Period 13.

Check donor restrictions as applicable

Review your restricted gift and endowment fund cost objects. Make sure you understand each donor’s restriction(s) and that the expenses associated with such funds comply with applicable restrictions.

Research and resolve outstanding issues

Research and resolve any outstanding fiscal issues as early as possible. Here are some of the most common issues:

Send your invoices and travel reimbursements to Accounts Payable and Travel as soon as possible to ensure posting in the current fiscal year.

Use this table for general guidance on accruals and deferrals at fiscal year-end closing.

Activity Type

Accrual/Deferral Type

Accounting Action*

Goods or services received by or provided to MIT in the current fiscal year that will not be paid until the next fiscal year (check Period 13 summary statement before accruing).

Accrued Expenses

Debit appropriate cost object** and cost element and then credit Internal Order 1216800 using the same cost element. In the absence of an actual invoice, use a reasonable estimate.

Goods or services provided by MIT in the current fiscal year for which payment will not be received until the next fiscal year.

Accrued Income

Credit appropriate cost object and cost element and then debit Internal Order 1078201 using the same cost element. In the absence of an actual bill, use a reasonable estimate.

Goods or services paid for in the current fiscal year that relate to the next fiscal year (e.g., prepaid rent or insurance). This includes invoices processed by Accounts Payable by June 30 for activities that relate to the next fiscal year.

Deferred Expenses

Credit appropriate cost object** and cost element then debit Internal Order 1121400 using the same cost element. DO NOT defer expenses not covered by the current fiscal year’s budget.

Income received in the current fiscal year that relates to activities or services in the next fiscal year (e.g., subscription revenue for publications to be issued in the next fiscal year).

Deferred Revenue

Debit appropriate cost object** and cost element then credit Internal Order 1225201 using the same cost element.

* This action should be reversed in Period 1 of the next fiscal year.

**WBS accruals are generally not made because they are cost reimbursable.Please consult with Financial Accounting and Reporting prior to doing a WBS accrual at fiscal year-end.If it is determined that a WBS accrual is appropriate, it must be processed in Period 12 and reversed in Period 1. WBS accruals are not allowed in Period 13.

Check donor restrictions as applicable

Review your restricted gift and endowment fund cost objects. Make sure you understand each donor’s restriction(s) and that the expenses associated with such funds comply with applicable restrictions.

Research and resolve outstanding issues

Research and resolve any outstanding fiscal issues as early as possible. Here are some of the most common issues:

Send your invoices and travel reimbursements to Accounts Payable and Travel as soon as possible to ensure posting in the current fiscal year.

Atlas

You can access all of MIT’s financial tools from Atlas.

Atlas, MIT’s self-service and administrative systems hub, provides an entry point for accessing MIT’s financial systems and tools. The VPF website will guide you through the related transactions and provide you with information and resources you need to complete your tasks.